A very interesting Anncmt today from Highlands ( HIG) ,minority shareholder of the Ramu Nickel-Cobalt mine in PNG which bodes very well for the future of COB. It basically shows the high price interested parties are willing to pay to obtain a guarantee of a secure supply of Cobalt.
As we know COB is targeting production of 4 to 5000 tons of equiv.Cobalt metal/ year.
Well, Cobalt 27 (owner of one of the largest stock of physical Cobalt) is paying an upfront DEPOSIT of USD 113 Million to secure an entitlement to 55% of Highlands share of Cobalt production ( and 27.5% of HIG share for the Nickel) from the Ramu mine for the life of the project ( 30Y min). It is a streaming agreement and you can find the details on HIG thread. If i understand correctly the current output of the mine is 34Kt/ y of Nickel and 3400 ton of Cobalt. But HIG share will only be 11.3% which means for the Cobalt portion of the deal 380 tons of Cobalt per year; so Cobalt 27 would get 55% of it =around 200 tons/y .... versus 4 to 5000 ton/y for COB. For the Nickel 55% of 11.3% of 34000T = 2150 tons/y: by doing an extrapolation, these 2150 ton of Nickel would be "equivalent" to 358 ton of Cobalt ( as price of Cobalt is roughly 6 times the Nickel price)..
So in total we would be talking about securing an equivalent of 560 tons of Cobalt/y for an upfront deposit of USD 118Million. Since at its minimum COB would produce 4000 tons/y it could expect a higher deposit for even just 25 % of its Co output. Food for thought.
To top it up Cobalt 27 is buying shares worth Au$ 15M at a 15% premium in HIG... the same premium LGI paid for COB last month.
The future looks really bright for COB.
- Forums
- ASX - By Stock
- Congo ebola outbreak adds to supply fears.
A very interesting Anncmt today from Highlands ( HIG) ,minority...
Featured News
Add COB (ASX) to my watchlist
|
|||||
Last
7.1¢ |
Change
-0.002(2.74%) |
Mkt cap ! $29.99M |
Open | High | Low | Value | Volume |
7.2¢ | 7.3¢ | 7.0¢ | $26.54K | 377.7K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 51211 | 7.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
7.1¢ | 59533 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 25000 | 0.070 |
4 | 64801 | 0.069 |
3 | 108000 | 0.068 |
1 | 50000 | 0.067 |
3 | 119000 | 0.066 |
Price($) | Vol. | No. |
---|---|---|
0.071 | 59533 | 2 |
0.073 | 34998 | 2 |
0.074 | 413200 | 4 |
0.075 | 105321 | 5 |
0.076 | 62616 | 3 |
Last trade - 16.10pm 04/09/2024 (20 minute delay) ? |
Featured News
COB (ASX) Chart |